SENATE BILL REPORT

ESB 5474

BYSenators Tanner, Patterson, Gaspard, Rinehart, Bailey, Bauer, Williams, Bender, Moore, Fleming, Talmadge, McDermott, Saling and McDonald; by request of Office of the Governor

Establishing the distinguished professorship trust fund program.

Senate Committee on Education

Senate Hearing Date(s):January 29, 1987; February 4, 1987

Majority Report:  Do pass as amended.

      Signed by Senators Gaspard, Chairman; Bauer, Vice Chairman; Rinehart, Vice Chairman; Bailey, Bender, Benitz, Craswell, Patterson, Saling, Smitherman, Warnke.

Senate Staff:Judy McNickle (786-7423)

                  March 18, 1987

AS PASSED SENATE, MARCH 17, 1987

BACKGROUND:

In 1985 the Legislature created the distinguished professors program to help the four-year public college and universities create endowments for distinguished scholars.  The program allows institutions to apply for $250,000 from trust funds when they can match state funds with equal pledged or contributed private donations.  Interest income from the endowments may be used to supply the salary of the holder of the professorship, pay salaries of his or her assistants, and pay expenses associated with the holder's scholarly work.  The program was funded for $750,000 by the 1986 Legislature.  To date, two distinguished professorships have been awarded:  one in English at the University of Washington and one in entomology at Washington State University.  Eastern Washington University has announced its intention to apply for the third available distinguished professorship this biennium.  Modifications to the original professorship program have been requested.

SUMMARY:

The distinguished professorship program established in 1985 is continued, obsolete statutory references to it are repealed, and the Washington distinguished professorship trust fund is established.  Purpose of the fund is to foster partnerships between citizens and institutions by creating a matching program to assist public four-year colleges and universities in their support of outstanding faculty.

The distinguished professorship trust fund is administered by the state treasurer, who receives funds appropriated by the Legislature and releases state matching funds at the request of the Higher Education Coordinating (HEC) Board to local endowment funds of designated institutions.

Administration of the program is assigned to the HEC Board which, in consultation with the public four-year college and universities, determines program guidelines that include but are not limited to:  amount of money available in the fund, institutional characteristics, and number of professorships previously awarded.

Each public four-year institution may apply for a $250,000 grant when that institution can match state funds with an equal amount of pledged or contributed private donations specifically contributed to the program after July 1, 1985.

The HEC Board must assign priority to each application and reserve matching grants for each institution.  If the designated institution has not matched its pledge within three years, the HEC Board may redesignate the professorship.

Each professorship becomes the property of the recipient institution and may be named at that institution's discretion. Each recipient college or university is responsible for soliciting private donations, investing and maintaining endowment funds, administering the professorship and reporting on the program.  Each institution may augment the endowment fund with additional private donations, and proceeds from the fund may be used to supplement the salary of the professor, pay salaries of the professor's assistants, and pay expenses associated with the professor's scholarly work.

During the 1987-89 biennium, appropriations to the distinguished professorship fund will be allocated according to a formula that reserves 45 percent of the appropriation for the University of Washington, 30 percent for Washington State University, and 25 percent to be divided among the three regional universities and The Evergreen State College, each of which is guaranteed one professorship and is eligible to compete for the remaining one professorship on a first-come, first-served basis. If none of those four institutions has obligated that remaining professorship by May 1, 1989, it may be allocated to either of the research universities.  Similarly, if by January 1, 1989 funds reserved for either of the research universities have not been designated, the other four institutions may apply for an additional award.

The funding allocation system may be superseded by conditions in any legislative act which appropriates funds for this program. Monies deposited in the trust fund are not subject to collective bargaining.

The Governor is allowed to transfer administration of the program after consultation with the HEC Board and the four-year higher education institutions, and the HEC Board and any other agency involved in administering the program are required to recommend needed changes in the program by December 1, 1989.

Fiscal Note:      requested

Senate Committee - Testified: Joyce Turner, Office of the Governor; Harold Olsen, Washington State University Foundation; Dr. Ernest Henley, University of Washington